Halftime: Is Rally Bullish Bounce or Simply Short Covering?

On Friday, investors were taking a long hard look at action in the S&P in an attempt to get a better handle on the market’s surprise rally.

You could almost hear the collective sign of relief on the Street after the all-important jobs report was not bearish as feared, but in fact showed the economy had generated more jobs than expected. On the news investors hit the buy button– generating a relief rally of sorts.

Of all the areas of strength in Friday’s session, the Fast Money traders were most focused on commodities and commodity-related stocks, which had been weighing on the market for most of the week. On Friday, materials was among the biggest gainers.

What should you make of the action?

Instant Insights with the Fast Money traders

Trader Steve Grasso is very cautious of the rally in general and the commodities rally in particular. He says, “don’t buy until commodities hold their 200-day moving average.”

Patty Edwards is also skeptical. She admits she’d love for the gains to hold but isn’t sure that they will.

Trader Brian Kelly thinks the commodity rally will either be confirmed or denied on Sunday night when China releases its latest economic numbers. He thinks the market hears that growth in China is accelerating, a bullish development for the space.

On the S&P, Grasso suggests watching 1344 as a key technical level to see if it generates resistance. Grasso’s bias is that it will because he thinks Friday’s gains are little more than a short covering rally. "I spotted the short covering starting on Thursday around 3:15pm ET," he says. “I’m looking for lower highs and I'd sell the market,” he says.

Pete Najarian is more bullish. He thinks "there's plenty of backbone in the rally outside the commodities that should hold the market at these levels."

----------

HARDEST HIT MATERIALS STOCKS THIS WEEK

On Friday the Fast traders took a long hard look at some of the materials stocks that took the hardest hit this week. They follow:

Of all the stocks listed above Steve Grasso thinks the most attractive name is AK Steel. “I’m seeing guys spinning out of Letter X and into this name,” he says.

______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.